The Effects of American Precious Metal Arrivals on Economic Growth in Europe

American money is not neutral at all in your model. What sort of real economic activity is it making possible here? Yeah. So the literature suggests already a few different transmission channels, through which American monies arrival could have contributed to economic growth in Europe. For example, this influx of American silver resulted in an annual silver price inflation of about 0.5% per year. And there's some anecdotal evidence that this price inflation encouraged wealthy households to divest their silver treasure because they were losing value. This contributed then to European capital formation.